1. No category

CIPM Expert Level Formula Policy
Certain formulas in the Expert curriculum need not be memorized because they will be accessible on the computer screen during the exam. If
an exam question requires one or more of these formulas, they will appear in pop-up exhibits (tabs) in the exam questions. This policy applies
only to the formulas shown below. The specified formulas will be shown exactly as they appear here. Candidates sitting for the Expert exam
will need to know and be able to apply all other formulas that are contained in the Expert curriculum.
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The following formulas will be provided on-screen:
Geometric Asset Allocation Effect (Sector View)
Geometric Stock Selection Effect (Sector View)
Geometric Attribution of Active Return (Sector View; Interaction Included in Selection)
Geometric Attribution of Active Return (Portfolio View)
Arithmetic Attribution with Cariño Smoothing Factor
Arithmetic Attribution with GRAP Smoothing
Multiperiod Geometric Attribution
Multicurrency Attribution (Karnosky and Singer)
Naïve Currency Effect (Geometric Attribution)
Attribution Analysis with Short Positions (Menchero)
Attribution Analysis for Market-Neutral Strategies (Menchero)
Name
Formula
Geometric Asset
Allocation Effect
(Sector View)
Geometric Stock
Selection Effect
(Sector View)
Geometric
Attribution of Active
Return (Sector
View; Interaction
Included in
Selection)
∑
∑
∑
∑
(
(
)
∑
)
(
∑
)
(
∑
)
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equations 5.24 and 5.25)
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equation 5.27 and 5.28)
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equations 5.29, 5.30 and 5.31)
Geometric
Attribution of Active
Return (Portfolio
View)
⏟
Arithmetic
Attribution with
Cariño Smoothing
∑
Arithmetic
Attribution with
GRAP Smoothing
⏟
∑
∏
∏
∑(
⏟
∑(
⏟
⏟
Multicurrency
Attribution
(Karnosky and
Singer)
∑
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equations 8.6 and 8.8)
∑
∑
Multiperiod
Geometric
Attribution
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equations 5.30 and 5.31)
)
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equations 5.29, 5.30 and 5.31)
∏
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equation 8.17)
∏
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Equation 8.26)
∑
⏟
)
∑ (( ̃
⏟
̃)
)
̃)
∑(
Naïve Currency
Effect (Geometric
Attribution)
(
̅
Attribution Analysis
with Short Positions
(Menchero)
̅ )
̅
∑(
⏟
̅
Attribution Analysis
for Market-Neutral
Strategies
(Menchero)
∑ ((
⏟
∑ ((
⏟
̅)
∑(
⏟
)
[(
̅ )
∑ ((
̅ ))
̅
(
)
(
̅ )
∑ ((
̅ )
∑(
]
SS 4, Rdg 7. “Performance Attribution with
Short Positions,” Jose Menchero
̅ )
̅
∑(
)
)
(Equations #31,32,29,30)
̅ )
̅ )
̅ )
̅
SS 4, Rdg 6. Practical Portfolio Performance
Measurement and Attribution, 2nd ed., Carl
Bacon (Table 6.4)
)
SS 4, Rdg 7. “Performance Attribution with
Short Positions,” Jose Menchero
(Equations #38,39,36,37)